We delivered on our commitments.

In our first year as a new company, we delivered on our financial commitments and made solid progress across all parts of our business, from the product portfolio to corporate and social responsibility. We are delivering on exactly what we promised to our stockholders: reliable returns, predictable cash flow and long-term growth.

First, we committed to operational excellence, and executed four quarters in a row of both GAAP net earnings per share and non-GAAP net earnings per share within or above our outlook ranges. Revenue declines have moderated in line with our expectations, with an increase in net revenues in the fourth quarter of fiscal year 2016 compared to the prior year period. We also implemented more than $1 billion in savings since the separation.

Second, we committed to delivering 50% to 75% of free cash flow to stockholders through share repurchases and dividends, and returned 72% of free cash flow to stockholders during the year through $2.0 billion of share repurchases and dividends.

Finally, we said we would invest to make decisions with a focus on long-term results. We delivered excellence in our core business during fiscal year 2016, taking profitable share where we chose to play and reinvesting our savings to fund research and development and to innovate in order to accelerate our growth and future initiatives. We are focused on both delivering for today and on building a business for long-term success.

Our strategy.

Our strategy is based on three key pillars: core, growth and future, all of which are supported by a range of incredible innovations.

Core

Our core is focused on our Personal Systems and Printing product portfolios. Our core business operates in a $385 billion market and makes up the vast majority of our revenues and our operating profits today. We are working to aggressively protect, defend and innovate in our core by revitalizing the consumer market and driving the commercial market in Printing and leading the commercial market and growing the premium market in Personal Systems.

Growth

Profits from our core business enable us to pursue our growth markets and capture natural adjacencies that we expect will become more material over the next two to three years. These markets have a total addressable market of approximately $150 billion and include the A3 copier segment and graphics in Printing and commercial mobility in Personal Systems.

Future

Our third pillar, which we refer to as the future, is for invention and category creation. We are making investments in world-class R&D innovation in categories that we believe will set us up for results in the next 3 to 10 years. This includes developing and expanding 3D Printing and creating a new immersive computing category in Personal Systems. We believe that these opportunities have a total addressable market of approximately $10 to $30 billion.

Underlying all three strategic pillars is the foundation of services and solutions that we are delivering; everything from Managed Print Services and Instant Ink, all the way through to device-as-a-service, security, manageability and support services. As one of the founders of Silicon Valley, we are building on the legend of HP to create anew. We are reinventing ourselves, our technologies and what tomorrow holds, so that industries, communities and individuals can keep reinventing how they operate and create what matters most to them.

Join us as we keep reinventing.